UNION officials last night warned train bosses an agreement over pay would not be reached unless they make an improved offer.

Both sides will meet for yet another round of talks on Thursday after a strike by Aslef members caused major disruption across the country yesterday, when none of Arriva Trains Wales’ 950 services ran.

The union is in a long-running dispute with the company over what the company says is a 12% pay offer over two years on top of its members’ annual £34,500 salary.

While agreeing to further talks, Stan Moran, Aslef district organiser for Wales, threatened more strikes if the company did not revise its offer.

“If that’s the full and final offer then we will still be talking next year,” he said.

“And if nothing happens, then more dates will be put on.”

Yesterday’s industrial action was estimated to have cost the Welsh economy up to £10m as people struggled to make it in to work on time – meaning hundreds of productivity hours were lost.

No alternative transport was laid on for passengers and as a result roads along all Arriva Trains Wales routes were reported to have seen an increase in traffic. An Arriva Trains Wales spokesman said the company would do everything it could to prevent any more days of disruption but said it had already done all it could.

“The offer has been increased three times and an offer of 12% over two years is generous in anybody’s mind. It’s our final offer and we will not be raising it again,” he said

“The prospect of further strike action is a regrettable possibility but we will do our utmost to avoid any by urging the union to reconsider.

“The door is open and we urge them to come forward and sit round the table to try and resolve this issue.”

He said the firm understood the frustration felt by its customers but said normal service would resume today.

He added: “I’m not sure whether one day of industrial action means we have to go to panic stations but we are mindful that we survive because people use the railway.

“If it continues then it could have a detrimental impact on passenger numbers but we are hopeful we can find a resolution quickly.”

Business leaders and politicians bemoaned the lack of alternative transport providers who could step in and limit the impact on productivity and consumer spending.

The Federation of Small Businesses in Wales expressed fears that if strikes were to happen on a regular basis then consumers may stop travelling into towns and stop spending money.

An FSB spokesman said: “From a business point of view we would wish they find other ways that didn’t have a negative impact.

“It shows the difficulty of a lack of competition in the public transport system. When there’s one company moving the whole of Wales around, one dispute can have a major detrimental impact.

“There’s no other company that can step in which is why we’d like to see more competition.”

David Russ, director at the South Wales Chamber of Commerce, said: “Alternative methods to strike action should always be looked at to resolve disputes. We urge both parties to take into account the impact this will have on the business community and find an amenable solution as quickly as possible.”

Jonathan Morgan, Conservative AM for Cardiff North, said: “It’s absolutely appalling that we are facing strike action because people are complaining about a 12% pay offer.

“It’s absurd that they have brought the nation to a grinding halt. People have to rely on our public transport and we need to make sure it’s doing its proper job. The union is holding the nation to ransom – I can’t think of anywhere else in the public sector where a 12% offer would not be greeted with joy.”